Sept. 19 (Bloomberg) -- China’s economy is highly likely to
slow next year and efforts to spur growth will be constrained by
inflation and government debt burdens, said Wu Xiaoling, a
former deputy central bank governor.

The government shouldn’t expand monetary or fiscal stimulus
because of price pressures and central and local-government
debt, Wu said in comments published today by the Financial News,
the central bank’s newspaper. Wu is vice director of the finance
and economy committee of the National People’s Congress.

The world’s biggest exporting nation faces weakening global
demand because of the European debt crisis and U.S.
unemployment. China’s officials are still grappling with the
side-effects of 2008 and 2009 stimulus measures, including
elevated inflation and the risk of bad loans for banks.

Gross domestic product expanded 9.5 percent in the second
quarter of this year.

Next year’s slowdown will be caused by factors including
reduced overseas demand, measures to alter the structure of the
economy and to cool the property market, and adjustments to
infrastructure investment, the article quoted Wu as saying.